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The following three hotels are operated by XYZ Company Hotel No. Rooms Annual revenue 1 200 6,750,000 2 250 9,000,000 3 300 11,250,000 4 150

The following three hotels are operated by XYZ Company

Hotel No.

Rooms

Annual revenue

1

200

6,750,000

2

250

9,000,000

3

300

11,250,000

4

150

4,500,000

5

350

13,500,000

Total

1250

45,000,000

The overhead costs incurred by XYZ Company to operate the upper three hotels are

Position

Salary

Related expenses

Total

General Manager

300,000

50,000

350,000

Financial Manager

200,000

25,000

225,000

Total

575,000

Instructions:

Use the tabulation below to allocate the overhead costs that pertains to XYZ Company based on the annual revenue generated by each hotel.

Note: I have attached the question in a word format

Total O.H

Hotel No.

Annual revenue

% of total rev.

$ O.H allocated

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